Is It True That I Can Buy a House with No Down Payment using a VA Loan?
True Path Loans, Inc.
True Path Loans, Inc.
Published on December 9, 2022
Is It True That I Can Buy a House with  No Down Payment using a VA Loan?

Is It True That I Can Buy a House with No Down Payment using a VA Loan?

Yes and no. Down payment yes but you will still owe the closing cost on the house. However, that can be paid by the seller.

Verify my mortgage eligibility (Dec 4th, 2024)

With the VA loan you don’t need to have a down payment. But you will still have to pay closing costs which can equal anywhere from 2 to 5% of the purchase price of the home.

You won't need a down payment but you will need money for inspection, earnest money, as well as possibly closing costs. Sometimes you can offer a higher price and have seller pay closing costs.

The items you will pay for up front are your: home inspection and the earnest money. The earnest money will be credited back to you at the closing table.

Verify my mortgage eligibility (Dec 4th, 2024)

When negotiating for the purchase price you can negotiate to have the seller pay a portion of closing costs or all of them. Your realtor will help you figure that out. It's best to get pre-approved up front and discuss your closing costs with your lender so you know how much to negotiate for.

There isn’t a down payment requirement as long as you qualify for the loan amount that you need in order to purchase that home.

Note that you will most likely need a deposit to go along with your contract. The deposit will be used to cover closing costs. If your closing costs end up being less than the deposit, it is possible to get some of the deposit refunded at closing. Your loan officer would be able to estimate closing costs while your realtor would have a better idea what size deposit would be needed with your offer.

Verify my mortgage eligibility (Dec 4th, 2024)

In Summary:
YES it is true, there is no down payment required on a VA loan.

However things you WILL need to pay for are….

  • Earnest Money Deposit (this is put in escrow to show the seller the strength of your offer)
  • Inspections and reports (pest, appraisal, home and roof inspection are just some things you may need to come out of pocket for during the closing process)
  • Closing costs! Closing costs vary person to person, but they can range from 2-5% of your purchase price. Unless you negotiated a seller credit or a lender credit to cover some of these, you will need to pay this at closing. Hope this helps!

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